Types of Title Insurance

Owner’s Policy – an Owner’s policy protects the purchase against a loss that results from a fault in ownership. Unlike many other types of insurance, title insurance does not require ongoing premium payments. A single premium payment is made at the time of closing. The seller usually pays for the Owner’s Policy. This policy is a way for the buyer to know he or she is receiving clear title to the real property being purchased.

Lender’s Policy – sometimes referred to as a loan policy or mortgage policy. A Lender’s policy protects the lender against loss due to unknown defects in title. Most banks issuing a loan for the purchase of real property will require a lender’s policy be obtained. It is important to note that this policy only protects the lender and does not protect the purchase of the property from any defects in title.